UK small businesses reveal the top 10 strategies driving sustainable growth

UK small businesses are finding practical ways to cut costs, reduce waste, build stronger relationships with suppliers and customers, and stand out in a crowded market.

New insights from Novuna Business Finance, gathered from interviews with small business owners across sectors including manufacturing, construction, engineering, and technology, reveals ten practical strategies small business owners say are critical to thriving while meeting net zero targets.

These findings will form the backbone of Novuna’s forthcoming Small Business Sustainability Insight report, which will include practical tips and insight from business experts on the challenges, opportunities, and realities of building a sustainable business.

The top 10 practical strategies small businesses say are vital for sustainability and growth.

One: Listen to your customer

Customers often guide how a business becomes more sustainable. Tim Everest from Grey Flannel explained, ‘We need to be going where people want us to be. Sustainability is driven by our customers, and our success depends on being good listeners.’ Grey Flannel uses bespoke mills across England and Scotland, which can make products a bit pricier, but customers are happy to pay.

Two: ‘Rebrand’ net zero as a culture not a cost

Small businesses often see net zero as an extra expense on tight cashflows. Steve Wardlaw from insurance brand Emerald Life said, ‘Net zero is being sold to small businesses as an extra expenditure that business owners are just expected to absorb, when they have seismic pressures on cashflow.’ He added, ‘What is needed are government backed moves to make sustainability and net zero integral parts of business culture and long term growth plans.’

Three: Be the change in your supply chain

Small businesses can inspire bigger companies by making sustainable choices. Simon Rolfe, co-founder of Sea Change, said: ‘If people choose Sea Change, or any brand that cares about the environment, it sends a message to the whole industry. It pushes growers, suppliers, and retailers to change. Small businesses can influence big companies to take responsibility – and once big retailers push for change, the whole market can shift.’

Four: Sustainability goes beyond green

Sustainability includes long term support for employees and the local community. Oxford based tech company Oxil focuses on creating local jobs and fostering a progressive culture to retain talent. Director Mark Robertshaw said, ‘Sustainability can be characterised by how a business supports people.’

Five: Invest in new equipment early

Sustainability requires a long term, strategic approach. Joe Lawrence, director of Libra Utility Services, warned: ‘What we are really saying if we buy older or cheaper equipment? This in the long term is a false economy.’ Meeting net zero targets means investing in new equipment, which can be funded through finance options that don’t drain working capital.

Six: Dare to be different

Rising congestion charges and taxes threaten the future of classic petrol cars. Richard Morgan is giving them new life by fitting electric engines, making these cars emission friendly. As he said, ‘We are taking essentially a classic car that has come to the end of its life, and we are melding it with an electric vehicle and giving a classic car a new lease of life.’ Simply put, ‘We are making gas guzzlers green. Believe it and anything is possible.’

Seven: Read market opportunities quickly

One major strength of small businesses is the relative size; it means they can be agile, spot market opportunities and move quickly. Chris Howard, co-owner of Cambridge Building Services, saw an opportunity and reacted by making garden studios for home workers, Chris explained, ‘It is not just environmentally friendly, but the ability to work from a home office has a positive impact on people’s wellbeing, family life and work-life balance. Our business success has been about spotting a market trend, moving quickly and launching a premium product that stands out.’

Eight: Small steps take you a long way

Knowing where to start can be daunting, and some small business owners feel policymakers don’t understand their daily challenges. Alwen Marshall, owner of Iechyd Da, said: ‘I really don’t think any politician, or any member of the local council understands the real day to day complications or the rules and regulations of running a small business.’ Despite these barriers, Alwen sees small businesses’ agility as an advantage, with the journey to sustainability achievable through ‘taking small steps, one at a time’.

Nine: Eliminate waste

Beyond adopting sustainable practices to support their business, or to make it more efficient, some small businesses are set up to tackle waste head on – and to make recycling core to their business offering. Pinky Laing, founder of The Remnant Revolution, is all about recycling fabrics to appeal to the growing market of consumers that have turned their backs on fast fashion’ Pinky added, ‘The textile industry is built on a culture of overproduction. Brands make far more than what they need, and the excess gets discarded.’

Ten: Learn from your mistakes

Building a sustainable business means trying new things and learning from what works and what doesn’t. Dean Loury-Jenkins, owner of Celtic Roots farm, found a natural way to tackle slug damage by using ducks to eat them and alpacas to protect the ducks, thus avoiding chemicals. As Dean said, ‘To build a sustainable business, you have got to try new things; some things have failed, and some things have been positive. There is no one way to do things but the learning journey makes your business stronger.’

Jo Morris, head of insight at Novuna Business Finance, commented: ‘Over the past 18 months, we have been fortunate to speak with small businesses across the UK, from a diverse range of sectors and stages of growth. What we have discovered is that sustainability looks different for every business, each facing unique challenges. Some focus on cutting waste and improving efficiency, while others work hard on strengthening relationships with suppliers and customers.

‘What unites them is a determination to balance growth with a genuine commitment to their people and the environment. Sustainability isn’t just a target to hit, it is an ongoing process that demands resilience, flexibility, and a willingness to learn.

‘At Novuna, we listen carefully to these different experiences and have learned so much from their stories. By truly understanding the real challenges small businesses face, we can better provide the support and solutions that truly reflect their needs. Our goal is to help businesses navigate their own sustainable growth journeys with the support that will give them the confidence to thrive.’